• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Nintendo shares plunge 6% by Monday close after trading as low as -18%

Status
Not open for further replies.

GHG

Gold Member
Shares of Japan's Nintendo have plunged 18% in early trade on Monday after the gaming giant issued a profit warning.

On Friday, Nintendo said it expects to make an operating loss of 35bn yen ($335m; £205m) for the financial year ending 31 March 2014.

It had initially forecast an operating profit of 100bn yen for the period.

The company blamed weaker-than-expected sales of its Wii U console during the holiday season for the downgrade in its earnings forecast.

As a result, it lowered its global Wii U sales forecast for the business year from nine million to 2.8 million units - a cut of nearly 70%.

Nintendo also reduced the sales forecast for its 3DS console from 18 million to 13.5 million units.

The firm's shares fell to as low as 11,935 yen on the Tokyo Stock Exchange on Monday.

http://www.bbc.co.uk/news/business-25805136


Just saw this on the BBC.

I know we have a thread discussing the recent forecasts but I don't see the share price and implications of their falling share price being discussed there.

Lock if old.

UPDATE:

More from Reuters:
(Reuters) - Shares in Nintendo Co Ltd tumbled by nearly a fifth on Monday after it warned of a third straight year of operating losses, heaping pressure on the creator of "Super Mario" to abandon its policy of not licensing its software to rivals.
After the market close on Friday, the Kyoto-based company slashed its global Wii U sales forecast for the year to March 31 by almost 70 percent to 2.8 million units."Its console-based business model spells doom for stakeholders. It has no choice but to accept the change," Jefferies analysts wrote in a note. "We believe Mario on mobile is coming."

They raised their price target on Nintendo to 29,000 yen from 26,550 yen, with a 'buy' rating on expectations of a change in strategy. Nintendo has so far refused to allow its games to be played on consoles built by competitors or on tablets or other mobile devices that are increasingly used by gamers. At one stage, the shares fell as much as 18.5 percent. By 0104 GMT, the stock was down 11.9 percent at 12,900 yen. It was the most traded stock on the main board. If it were to finish the day at that last traded price, it would mark its worst one-day decline since July 2011, wiping off about $2.3 billion from Nintendo's market capitalization.

Nintendo now expects an operating loss of 35 billion yen ($335.7 million), compared with an initial forecast for a 100 billion yen profit. The weak Wii U sales stand in sharp contrast to those of its predecessor, Wii, which propelled Nintendo shares to a record high of 73,200 yen in November 2007. The stock has lost more than 80 percent since then.

The latest warning comes just three months after Nintendo reiterated its sales projections for the Wii U, counting on the console to revive its fortunes as Microsoft Corp released its new XBox One and Sony Corp launched its PlayStation 4. Nintendo also cut its sales forecast for its handheld 3DS to 13.5 million units from 18 million. It now forecast a full-year dividend of 100 yen, down from a previous estimate of 260 yen.

The Japanese game maker is to hold a management strategy presentation on January 30.

Some market participants thought the stock could go lower.

"You would have expected them to go down more and stayed down," said a hedge fund manager.

"Some people are buying on expectations (that Nintendo will change its strategy) ... but the chance of a change in the short-term is still very low," he said, adding that he would be interested in the stock if it fell below 10,000 yen.

($1 = 104.2700 Japanese yen)

http://www.reuters.com/article/2014/01/20/us-nintendo-earnings-shares-idUSBREA0J00V20140120

UPDATE 2:

Markets closed with Nintendo down 6% which represents a market cap loss of $1.2 billion:

Nintendo Co. (7974) is under pressure to consider ending production of video-game machines after reporting disappointing sales of its Wii U console and forecasting a surprise loss, prompting its stock to tumble.

Nintendo fell 6.2 percent to 13,745 yen, its biggest decline in Tokyo since Sept. 9. The fall wiped about $1.2 billion in the company’s market value. Nintendo on Jan. 17 projected an operating loss for the year ending in March and cut its forecast for the Wii U’s annual sales more than two-thirds.

More and a graph at the link:

http://www.bloomberg.com/news/2014-01-19/nintendo-pressed-to-exit-hardware-after-wii-u-flop.html
 

Montresor

Member
Sony gets Metroid, Mario, Kid Icarus, Pikmin exclusives.

Microsoft gets Zelda and Pokemon exclusives.

If Steambox ever gets off the ground, they can have Sin and Punishment exclusives and the occasional Nintendo-published Silicon Knights title.

It will be great to play back-catalogue titles with trophies and achievements.
 
Sony gets Metroid, Mario, Kid Icarus, Pikmin exclusives.

Microsoft gets Zelda and Pokemon exclusives.

If Steambox ever gets off the ground, they can have Sin and Punishment exclusives and the occasional Nintendo-published Silicon Knights title.

It will be great to play back-catalogue titles with trophies and achievements.

No thanks.
 

Regiruler

Member
Sony gets Metroid, Mario, Kid Icarus, Pikmin exclusives.

Microsoft gets Zelda and Pokemon exclusives.

If Steambox ever gets off the ground, they can have Sin and Punishment exclusives and the occasional Nintendo-published Silicon Knights title.

It will be great to play back-catalogue titles with trophies and achievements.

*wakes up screaming*
 
tKQTI3d.png
 

Maitiú

Member
35 billion loss? Didn't Nintendo say 25 on Friday?

edit: sorry, n/m, the 25 billion loss was loss in net income, not operating loss.
 

Sandfox

Member
Sony gets Metroid, Mario, Kid Icarus, Pikmin exclusives.

Microsoft gets Zelda and Pokemon exclusives.

If Steambox ever gets off the ground, they can have Sin and Punishment exclusives and the occasional Nintendo-published Silicon Knights title.

It will be great to play back-catalogue titles with trophies and achievements.

That would be so bad...

with Iwata at the helm? lol ...

Even then its cheap now for people who want to buy in.
 

GHG

Gold Member
Is there a company that is currently rich enough to launch a takeover of nintendo that would continue the charm and legacy of what Ninendo has built over the years without destroying their franchises?

Hypotheical I know, but I don't think one even exists other than possibly Valve.
 

Montresor

Member
That would be so bad...

Whether it's on Sony or Microsoft systems, I don't see what is the difference? When Nintendo goes third-party, they still will be developing those games internally. The games would just be money-hatted onto a specific console for exclusivity.

I.E. The Xbox One exclusive Zelda game is still developed by EAD and Aonuma. Nintendo-published, Nintendo-developed, but moneyhatted for exclusivity.
 

Laieon

Member
Is there a company that is currently rich enough to launch a takeover of nintendo that would continue the charm and legacy of what Ninendo has built over the years without destroying their franchises?

Disney.
 

Crayons

Banned
Sony gets Metroid, Mario, Kid Icarus, Pikmin exclusives.

Microsoft gets Zelda and Pokemon exclusives.

If Steambox ever gets off the ground, they can have Sin and Punishment exclusives and the occasional Nintendo-published Silicon Knights title.

It will be great to play back-catalogue titles with trophies and achievements.

84971-Ron-Swanson-throws-out-compute-CMGq.gif


I don't even have to explain why that's the worst idea I've ever heard.
 

qq more

Member
Sony gets Metroid, Mario, Kid Icarus, Pikmin exclusives.

Microsoft gets Zelda and Pokemon exclusives.

If Steambox ever gets off the ground, they can have Sin and Punishment exclusives and the occasional Nintendo-published Silicon Knights title.

It will be great to play back-catalogue titles with trophies and achievements.

This is the thing here nowadays. You can't tell when one is being serious or not, no matter how ridiculous their post is...

EDIT: holy fuck you're actually serious. this idea doesn't make remotely any sense. do you see sega having their franchises staying exclusive to certain systems through moneyhatting? (and no dont say sonic lost world because we still get non-nintendo sonic games) wtf is the point of this?
 
I'm so damn hyped for the investor's meeting/Nintendo direct right now.

Something's gotta happen now or something's gotta give
It will come it will come it will come it will come.
 

Amir0x

Banned
god I hope the Nintendo I love and cherish doesn't fade away into some awful mobile phone developer :(

I don't believe they're "doomed" yet, but I hope they have some stellar ideas for their next hardware...
 
Whether it's on Sony or Microsoft systems, I don't see what is the difference? When Nintendo goes third-party, they still will be developing those games internally. The games would just be money-hatted onto a specific console for exclusivity.

I.E. The Xbox One exclusive Zelda game is still developed by EAD and Aonuma. Nintendo-published, Nintendo-developed, but moneyhatted for exclusivity.

Really? This website is too much sometimes
 

JordanN

Banned
god I hope the Nintendo I love and cherish doesn't fade away into some awful mobile phone developer :(

I don't believe they're "doomed" yet, but I hope they have some stellar ideas for their next hardware...
Why do they have to be mobile?

You're suppose to make money releasing on more platforms, not one.
 

Bishop89

Member
Does that mean sony is the bigger company again? Sorry I dunno how this stock/shares stuff works. All I remember is that thread from a week ago and think that had to do with shares
 

Ban Puncher

Member
Sony gets Metroid, Mario, Kid Icarus, Pikmin exclusives.

Microsoft gets Zelda and Pokemon exclusives.

If Steambox ever gets off the ground, they can have Sin and Punishment exclusives and the occasional Nintendo-published Silicon Knights title.

It will be great to play back-catalogue titles with trophies and achievements.

UC0P3wA.gif
 

BinaryPork2737

Unconfirmed Member
Sony gets Metroid, Mario, Kid Icarus, Pikmin exclusives.

Microsoft gets Zelda and Pokemon exclusives.

If Steambox ever gets off the ground, they can have Sin and Punishment exclusives and the occasional Nintendo-published Silicon Knights title.

It will be great to play back-catalogue titles with trophies and achievements.

Doom thread? Doom thread.
 

Danny Dudekisser

I paid good money for this Dynex!
Honestly, I'm surprised it wasn't more than that. That news was about as bad as you can report to shareholders without saying "we're bankrupt."
 

Syf

Banned
Hopefully this brings about the change that Nintendo has been needing for a while. Let me love you.
 

Amir0x

Banned
Why do they have to be mobile?

You're suppose to make money releasing on more platforms, not one.

i don't think their next step is there yet. They'd try to leverage their properties in some way for iOS/Android than go third party quite yet for every platform
 

Sandfox

Member
Why do they have to be mobile?

You're suppose to make money releasing on more platforms, not one.

Not really. In that scenario they would just be going for a more profitable way of running their company and that wouldn't necessarily have to include the other consoles.

Whether it's on Sony or Microsoft systems, I don't see what is the difference? When Nintendo goes third-party, they still will be developing those games internally. The games would just be money-hatted onto a specific console for exclusivity.

I.E. The Xbox One exclusive Zelda game is still developed by EAD and Aonuma. Nintendo-published, Nintendo-developed, but moneyhatted for exclusivity.

You're ignoring a lot of other things like the Nintendo talent leaving and I'm pretty sure it wouldn't be Game Freak working on a Microsoft Pokemon game.
 

Montresor

Member
Not sure what the uproar over my post was. I tried to balance the distribution of franchises fairly. I get that I might have been too generous giving Microsoft the Zelda franchise, but Sony gets Mario + Pikmin + Metroid. Fair trade off.

The thing I would be most interested in for sure is Majora's Mask on XBLA.
 
i don't think their next step is there yet. They'd try to leverage their properties in some way for iOS/Android than go third party quite yet for every platform

PokeTouch - Pokemon Amie for smart devices, random Pokemon every day to play with.

Or

PokeTouch - Pokemon Amie for smart devices, use Pokemon Bank to transfer Pokemon to your phone and play with them on the go.

what, more MK8 and Smash footage?

You clearly don't know what you're talking about. When have they ever shown off game footage at an Investor Briefing?
 
Nintendo needs to stop making consoles. Their hardware is crap. It's only holding them back commercially and creatively.

Imagine the next Zelda on PS4/Xbone. It would sell 10 million copies easily. As opposed to being sent to die on a console nobody wants.
 
Nintendo will have to sell off some of their IPs. Random GAF users will then own the rights to Metroid, Star Fox, F-Zero, and Fucking Donkey Kong (DKC reboot).
 

JordanN

Banned
Not really. In that scenario they would just be going for a more profitable way of running their company and that wouldn't necessarily have to include the other consoles.
How are Nintendo making games for Wii U? They need HD teams and those people can't be shoved in a corner if they stick to just phones.

If PS4/XBO continue to break records (which I'm pretty sure they are), there's no way they're going to blindside them. Even if it means releasing one game, an audience of 80 million wouldn't be ignored.
 

GHG

Gold Member
Just updated the OP with a more detailed writeup from Reuters:

Highlights in bold:

(Reuters) - Shares in Nintendo Co Ltd tumbled by nearly a fifth on Monday after it warned of a third straight year of operating losses, heaping pressure on the creator of "Super Mario" to abandon its policy of not licensing its software to rivals.
After the market close on Friday, the Kyoto-based company slashed its global Wii U sales forecast for the year to March 31 by almost 70 percent to 2.8 million units."Its console-based business model spells doom for stakeholders. It has no choice but to accept the change," Jefferies analysts wrote in a note. "We believe Mario on mobile is coming."

They raised their price target on Nintendo to 29,000 yen from 26,550 yen, with a 'buy' rating on expectations of a change in strategy. Nintendo has so far refused to allow its games to be played on consoles built by competitors or on tablets or other mobile devices that are increasingly used by gamers. At one stage, the shares fell as much as 18.5 percent. By 0104 GMT, the stock was down 11.9 percent at 12,900 yen. It was the most traded stock on the main board. If it were to finish the day at that last traded price, it would mark its worst one-day decline since July 2011, wiping off about $2.3 billion from Nintendo's market capitalization.

Nintendo now expects an operating loss of 35 billion yen ($335.7 million), compared with an initial forecast for a 100 billion yen profit. The weak Wii U sales stand in sharp contrast to those of its predecessor, Wii, which propelled Nintendo shares to a record high of 73,200 yen in November 2007. The stock has lost more than 80 percent since then.

The latest warning comes just three months after Nintendo reiterated its sales projections for the Wii U, counting on the console to revive its fortunes as Microsoft Corp released its new XBox One and Sony Corp launched its PlayStation 4. Nintendo also cut its sales forecast for its handheld 3DS to 13.5 million units from 18 million. It now forecast a full-year dividend of 100 yen, down from a previous estimate of 260 yen.

The Japanese game maker is to hold a management strategy presentation on January 30.

Some market participants thought the stock could go lower.

"You would have expected them to go down more and stayed down," said a hedge fund manager.

"Some people are buying on expectations (that Nintendo will change its strategy) ... but the chance of a change in the short-term is still very low," he said, adding that he would be interested in the stock if it fell below 10,000 yen.

($1 = 104.2700 Japanese yen)

http://www.reuters.com/article/2014/01/20/us-nintendo-earnings-shares-idUSBREA0J00V20140120

Strategy meeting due on the 30th. It will be interesting to see what the share price is going into that meeting and also what will come out of the meeting. I think its safe to say that there will be blood.
 

Griss

Member
Very few of us agree about what Nintendo can or should do to get themselves out of their situation.

What I think we CAN agree on is that the tenor of the discussion about Nintendo changed this week, and in a significant way. There can no longer be any denial about the situation they're in.

I've been looking forward to this news - not because I want Nintendo to fail, but because I knew they were failing and yet half the people you'd talk to would outright deny it. 'Wait for the games' for Wii U, and '3DS in beast mode'. Fantasy stuff. It's just a little sad that this had to happen after one of their best years of software in a long, long time.

It's going to be a very, very interesting year.
 
Status
Not open for further replies.
Top Bottom